| Earthquake Awareness and Preparedness |
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| Historical account of 1811-1812 New Madrid Earthquakes and look at modern day potential for catastrophic earthquake |
Earthquake Insurance in Missouri
Recent earthquakes in Haiti, Chile, Mexico, New Zealand and Japan are wake-up calls for Missourians that
a New Madrid Earthquake can happen any time and emergency preparedness is essential, which has
lagged far behind California. One critical component of earthquake preparedness is to reconsider
purchasing earthquake insurance to effectively manage the potential costs of future earthquakes because
homeowners insurance does not cover earthquake damage to your home structure, home contents or
personal possessions, while vehicles are only covered under the comprehensive part of the auto
insurance policy.
Recent earthquakes in Haiti, Chile, Mexico, New Zealand and Japan are wake-up calls for Missourians that
a New Madrid Earthquake can happen any time and emergency preparedness is essential, which has
lagged far behind California. One critical component of earthquake preparedness is to reconsider
purchasing earthquake insurance to effectively manage the potential costs of future earthquakes because
homeowners insurance does not cover earthquake damage to your home structure, home contents or
personal possessions, while vehicles are only covered under the comprehensive part of the auto
insurance policy.
The “Final Report of the Missouri Earthquake Insurance Task Force” issued on December 19, 2008 by the
Missouri Department of Insurance, Financial Institutions & Professional Registration provides the following
statements and/or facts:
Missouri Department of Insurance, Financial Institutions & Professional Registration provides the following
statements and/or facts:
 | Missouri is the third largest market for earthquake insurance coverage in the United States, after the | |
| states of California and Washington. In 2007, Missouri homeowners and business owners spent nearly $80.5 million on earthquake coverage. Currently, 35% of Missouri homes have earthquake insurance coverage down from 45% in 1998. |
| The earthquake threat to Missouri is real and significant from the New Madrid Fault System which is | |
| a complex system of three main faults. |
| Historically, three main earthquakes of magnitude 7.0-8.0 occurred on December 16th 1811, | |
| January 23rd 1812, and February 7th 1812. |
| Missouri has a 25-40% probability of having an earthquake magnitude of 6.0 or greater by 2052 | |
| generated from the New Madrid Fault in southeastern Missouri, according to a recent research study by the United States Geological Survey (USGS) and the Center for Earthquake Research and Information (CERI) at the University of Memphis. A New Madrid Earthquake of magnitude 7.7 similar to any of the three large earthquakes of winter 1811-1812 has a 7-10% chance of occurrence in the same time frame. |
| A New Madrid Earthquake of magnitude 7.7 is expected to cause significant loss of life and | |
| substantial economic losses and earthquake damage to homes, businesses, transportation systems and utilities in 8 Midwestern States. The total economic losses is anticipated to reach $56.6 billion in Tennessee, $46.0 billion in Kentucky, $38.7 billion in Missouri, $34.1 billion in Illinois, $18.9 billion in Arkansas, $9.5 billion in Mississippi, $1.4 billion in Indiana, and $1.1 billion in Alabama, according to a recent study by Mid America Earthquake Center (MAE). |
| Focusing on Missouri, a total of 84,567 single-family, other residential, commercial and industrial | |
| structures would suffer earthquake damage including 36,891 suffering complete destruction. The total casualties are expected to be 15,639 including 760 fatalities, and about 122,000 persons would be displaced that require having 17.6 million square feet of shelter space. In the first week after the earthquake, it is required to have 1.28 million gallons of emergency drinking water, 2.05 million pounds of ice and 24 truckloads of emergency food. The $38.7 billion anticipated total economic losses include $25.1 billion utility losses, $11.8 billion building losses and $1.7 billion transportation losses. It is expected to have a total of 6.0 million tons of debris including 2.9 million tons of brick, wood, contents, and 3.1 million tons of steel and concrete. |
Insurance Premium
Earthquake insurance premiums in Missouri vary widely based on factors listed below. Generally
speaking, the statewide average cost is around $0.50 per $1,000 of coverage. As might be expected,
earthquake insurance rates in the bootheel region of the state, closest to the New Madrid Fault System,
have the highest insurance rates. Areas north of the bootheel along the Mississippi Valley are also
relatively high, due to the threat of earthquake damage associated with the potential for liquefaction of their
muddy alluvial soils. The cost in these areas is about $1.17 per $1,000 of coverage. Therefore, to insure a
$150,000 house located in these areas, the cost of earthquake coverage would be roughly $175.50, which
is “very affordable” when compared to California earthquake insurance cost. Higher insurance rates in
Missouri are often associated with:
Earthquake insurance premiums in Missouri vary widely based on factors listed below. Generally
speaking, the statewide average cost is around $0.50 per $1,000 of coverage. As might be expected,
earthquake insurance rates in the bootheel region of the state, closest to the New Madrid Fault System,
have the highest insurance rates. Areas north of the bootheel along the Mississippi Valley are also
relatively high, due to the threat of earthquake damage associated with the potential for liquefaction of their
muddy alluvial soils. The cost in these areas is about $1.17 per $1,000 of coverage. Therefore, to insure a
$150,000 house located in these areas, the cost of earthquake coverage would be roughly $175.50, which
is “very affordable” when compared to California earthquake insurance cost. Higher insurance rates in
Missouri are often associated with:
| Proximity of the home with respect to New Madrid Fault System because buildings would probably | |
| experience earthquake damage and even collapse from moderate-to-strong ground shaking. |
| The home is located in an area prone to soil liquefaction or landslide as the likelihood of earthquake | |
| damage would be higher in such area. |
| Predominantly poor soil conditions beneath the concrete foundations of the building because the | |
| ground shaking will most likely be amplified. |
| Year built where older homes cost more to insure than newer ones because houses built before the | |
| 1980’s (if not retrofitted) lack earthquake-resisting system in their structural design and are not constructed per the seismic recommendations of current building code. |
| Number of stories where multi-story houses are more vulnerable to earthquake ground shaking and | |
| structural damage than single-story houses. |
| Unreinforced masonry construction and nonductile reinforced concrete construction both have higher | |
| insurance rate among all other construction materials (especially timber frame houses), because of their well-known poor structural performance during earthquakes. |
| The insured value of the home and the optional coverage selected by the homeowner. | |
Who should buy Earthquake Insurance?
The earthquake map below shows the anticipated Modified Mercalli Intensity (MMI) at various
counties in Missouri, Illinois, Kentucky, Tennessee, and Arkansas within and around the New
Madrid Fault System, for a hypothetical earthquake of magnitude 7.6. MMI describes the severity of
ground shaking, where homes located within MMI values of VII or above which are represented by
the green, yellow, light orange and dark orange counties would require purchasing earthquake
insurance. Brief description of MMI values as follows:
Remember to cover your vehicle(s) under the comprehensive part of the auto insurance policy.
Return back to Earthquake Insurance
The earthquake map below shows the anticipated Modified Mercalli Intensity (MMI) at various
counties in Missouri, Illinois, Kentucky, Tennessee, and Arkansas within and around the New
Madrid Fault System, for a hypothetical earthquake of magnitude 7.6. MMI describes the severity of
ground shaking, where homes located within MMI values of VII or above which are represented by
the green, yellow, light orange and dark orange counties would require purchasing earthquake
insurance. Brief description of MMI values as follows:
| MMI value of VII is described of having strong ground shaking with nonstructural damage, | |
| negligible structural damage in buildings of good design and construction, minor-to- moderate damage in well-built ordinary structures, and considerable damage in poorly- built or badly-designed structures. Damage to poorly-built masonry construction. Some cracks in better-constructed masonry buildings. Weak masonry chimneys broken at roof line. Fall of plaster, loose bricks, stones, tiles, cornices, unbraced parapets and porches. Furniture broken. Waves on ponds. Difficult to stand or walk. Noticed by car drivers. |
| MMI value of VIII is described of having very strong ground shaking with minor structural | |
| damage in specially-designed structures, considerable damage in ordinary substantial buildings with partial collapse, and extensive damage of unreinforced masonry construction. Fall of some masonry walls. Timber frame houses moved on foundations if not bolted, loose partition walls thrown out. Twisting, falling of chimneys and monuments. Heavy furniture overturned. Steering of cars affected. Tree branches broken. |
| MMI value of IX is described of having violent ground shaking with considerable structural | |
| damage in specially-designed structures, and well-designed frame structures thrown out of plumb. Extensive damage in substantial buildings, with partial collapse. Earthquake damage to masonry buildings ranges from collapse to serious damage unless modern design and construction. Wooden houses rack, and shifted off foundations if not bolted. Underground pipes broken. General panic. |
| MMI value of X is described of having very violent ground shaking with extreme structural | |
| damage. Most masonry and frame structures destroyed with foundations. Even some well- built timber frame houses heavily damaged or destroyed. Water thrown on banks of canals, rivers, lakes, etc. Rails bent. |
Remember to cover your vehicle(s) under the comprehensive part of the auto insurance policy.
Return back to Earthquake Insurance
| Earthquake Map for MMI around the New Madrid Fault from Magnitude 7.6 |
| Click on the thumbnail for larger image than the one below |